Senators during a past special sitting at the Senate, Parliament buildings in Nairobi County.
Senators have broken ranks with governors in their demand for Sh534.96 billion as equitable share allocation to counties in the coming financial year ending June 2027.
This is after the Senate Finance and Budget committee recommended that counties be allocated Sh454.74 billion, a figure which is Sh80.2 billion less than what is being demanded by the Council of Governors (CoG).
The recommendation by the Mandera Senator Ali Roba-led committee is lower than the proposal by the Commission on Revenue Allocation (CRA), which wants the National Treasury to allocate counties at least Sh458.94 billion.
The latest development comes as senators and governors are embroiled in a standoff over appearance before Senate watchdog committees to account for billions of shillings allocated to the devolved units.
In the current financial year ending June 30, 2026, the 47 counties were allocated Sh415 billion as equitable share of revenue.
“Having considered the budget policy statement (BPS) and stakeholders’ submissions, the Committee recommends that, among others, the county equitable share for financial year 2026/27 will be Sh454,743,157,879,” read the report by the committee.
Appearing before the committee, the CoG led by its chairperson Ahmed Abdullahi had rallied the committee to support their push for Sh534.96 billion.
This is after the national government proposed that the 47 counties only get Sh420 billion during the fiscal year beginning July this year.
The proposed amount is a paltry Sh5 billion more than what the county governments received for the current fiscal year after months of stalemate.
Overall budget implementation
The proposal by the CoG represents a Sh106.97 billion increment comprising Sh35 billion being an adjustment for revenue growth, and Sh8.94 billion budget requirement to transition universal health care workers.
The governors are also looking at receiving Sh65.97 billion in resources related to unbundled and delineated functions still being performed by ministries, departments and agencies.
Some Sh10.06 billion will go towards the implementation of the outstanding third and fourth remuneration and benefits review cycles and Sh65.97 billion for the first phase of identified delineated and gazetted devolved functions.
Defending their proposal, the Wajir governor said the devolved units should be due another Sh8.94 billion to transition UHC workers, contracts will lapse between April 2026 and September 2026, to counties on permanent and pensionable terms as had been agreed upon between the Ministry of Health and the Council.
He added that counties need another Sh4.77 billion to implement the final phase of the third cycle of remuneration and benefits for public officers in county governments and Sh5.28 billion for the first phase of the fourth cycle.
In the financial year ended June 30, 2025; the overall budget implementation across the 47 counties remained below target due to delayed equitable share disbursement and underperformance of own-source revenue collections.
The BPS indicates that county governments collectively absorbed Sh470.74 billion or 78.23 percent of their total annual budget of Sh601.69 billion.
A review of exchequer releases indicates that counties received Sh32.761 billion in the first quarter, Sh128.019 billion in the second quarter, Sh63.923 billion in the third quarter, and Sh162.72 billion of the total Sh387.425 billion equitable share allocation during the fourth quarter.
The fourth quarter exchequer release was equivalent to 42 percent of total allocation of the FY 2024/25, significantly affecting the execution of development activities due to late disbursement.
Nonetheless, some senators have vowed not to support governors’ push for more funding should the county bosses continue to snub Senate oversight committees.
Senate County Public Accounts Committee (CPAC) members said governors cannot run away from accountability yet they expect the Senate to approve their request for an increase in allocations to counties.
Governors boycotting appearances
The committee chairperson, Moses Kajwang’, maintained that the county bosses must first account for the Sh387 billion they were allocated during the financial year ended June 30, 2025 before expecting the Senate to support any push for more allocations.
He said the decision by governors to continue boycotting appearances before the oversight committees is contempt of the entire House.
“The Senate cannot be dictated to by the Council of Governors on how it should conduct its business as long as it operates within the law,” said Mr Kajwang’.
“Ironically, the same CoG that came to the Senate with a begging bowl is inciting its members not to appear before Senate oversight committees to account for the 387 billion allocated to county governments in the 2024/2025 financial year. Our public finance system demands accountability before releasing additional funds. We shall strictly enforce this,” added the Homa Bay senator.
Kitui Senator Enoch Wambua said CPAC will have no option but to adopt the audit reports that have already been presented before it and that the governors should not think that by snubbing the committee, they will get away with accountability.
Nandi Senator Samson Cherargei said appearing before the Senate is not a privilege but a constitutional obligation terming the CoG as a club of billionaires that is out to defend what they have acquired during their tenure in office without caring for their people.
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